Since the trend is the direction of the next longer dominant cycle than the one you are trading, the beginning of an uptrend is often confirmed by a buy signal in the next longer time frame. In the weekly chart at the two lows...
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Trade With The Trend
But the key to trading any market in any time frame is TREND. If the trend is up, buy the dips (cycle bottoms); if the trend is down, sell the rallies (cycle tops). Easy to say, but how do you know what the trend is? And how do...
Timing Bands
The chart below shows cycle timing bands that forecast time periods for cycle tops and bottoms with 70% accuracy. Knowing that a cycle is most likely to top or bottom in a timing band allows you to wait for a buy or sell signal...
Cycles Within Cycles
The key to trading with cycles is an understanding of the interplay of cycles within cycles. Almost all trading cycles have a ½ trading cycle (see following illustration). A 20-day (bar) trading cycle has within it two 10-day...
Trading Signals
RSI (Relative Strength Indicator) is a powerful oscillator which can be used to identify cycle highs and lows (to review RSI, see Basic Training: Overbought/Oversold Indicators 1). I have found that for most markets, a three-day...
Identifying Cycle Tops and Bottoms
Cycle Trading Identifying Cycle Tops and Bottoms Editor’s Note: For years Walter Bressert has been an innovative leader in the development of trading systems based on cycles. Walter’s work is difficult, but offers an...
The Professional Day Trader
Many people have asked me over the years what it takes to be a successful day trader. The answer is not clear but here are a few observations. First, you must have a complete commitment to trading and do it full-time. If it is a...
Money Management – Trading Thirds
For many traders, the markets are a game of balancing fear, greed and hope. When a trader is out of balance, he likely will lose money, and if he is out of control, he will lose balance. Well-designed money management concepts...
The Daily Trading Plan
Why bother with a daily trading plan? Because trading well is a rational process, and planning is the act of developing a rationale. Without a rationale for one’s trading, several things could happen, all bad. First...
The Business of Trading
The Business Plan Trading is a business. As in any other business, a well thought-out plan can make the difference between success and failure. Most businesses need a plan to motivate and coordinate employees, drive a marketing...